80_FR_43772 80 FR 43631 - Medium- and Heavy-Duty Vehicle Fuel Efficiency Program

80 FR 43631 - Medium- and Heavy-Duty Vehicle Fuel Efficiency Program

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration

Federal Register Volume 80, Issue 141 (July 23, 2015)

Page Range43631-43634
FR Document2015-18073

Federal Register, Volume 80 Issue 141 (Thursday, July 23, 2015)
[Federal Register Volume 80, Number 141 (Thursday, July 23, 2015)]
[Rules and Regulations]
[Pages 43631-43634]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18073]


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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

49 CFR Part 535


Medium- and Heavy-Duty Vehicle Fuel Efficiency Program

CFR Correction

    In Title 49 of the Code of Federal Regulations, Parts 400 to 571, 
revised as of October 1, 2014, on page 146, Sec.  535.9 is reinstated 
to read as follows:


Sec.  535.9  Enforcement approach.

    (a) Compliance. (1) NHTSA will assess compliance with fuel 
consumption standards each year, based upon EPA final verified data 
submitted to NHTSA for its heavy-duty vehicle fuel efficiency program 
established pursuant to 49 U.S.C. 32902(k). NHTSA may conduct 
verification testing throughout a given model year in order to validate 
data received from manufacturers and will discuss any potential issues 
with EPA and the manufacturer.
    (2) Credit values in gallons are calculated based on the final 
CO2 emissions and fuel consumption data submitted by 
manufacturers and verified/validated by EPA.
    (3) NHTSA will verify a manufacturer's credit balance in each 
averaging set for each given model year. The average set balance is 
based upon the engines or vehicles performance above or below the 
applicable regulatory subcategory standards in each respective 
averaging set and any credits that are traded into or out of an 
averaging set during the model year.
    (i) If the balance is positive, the manufacturer is designated as 
having a credit surplus.
    (ii) If the balance is negative, the manufacturer is designated as 
having a credit deficit.
    (4) NHTSA will provide written notification to the manufacturer 
that has a negative balance for any averaging set for each model year. 
The manufacturer will be required to confirm the negative balance and 
submit a plan indicating how it will allocate existing credits or earn, 
and/or acquire by trade credits, or else be liable for a civil penalty 
as determined in paragraph (b) of this section. The manufacturer must 
submit a plan within 60 days of receiving agency notification.
    (5) Credit shortfall within an averaging set may be carried forward 
only three years, and if not offset by earned or traded credits, the 
manufacturer may be liable for a civil penalty as described in 
paragraph (b) of this section.
    (6) Credit allocation plans received from a manufacturer will be 
reviewed and approved by NHTSA. NHTSA will approve a credit allocation 
plan unless it determines that the proposed credits are unavailable or 
that it is unlikely that the plan will result in the manufacturer 
earning sufficient credits to offset the subject credit shortfall. If a 
plan is approved, NHTSA will revise the respective manufacturer's 
credit account accordingly by identifying which existing or traded 
credits are being used to address the credit shortfall, or by 
identifying the manufacturer's plan to earn future credits for 
addressing the respective credit shortfall. If a plan is rejected, 
NHTSA will notify the respective manufacturer and request a revised 
plan. The manufacturer must submit a revised plan within 14 days of 
receiving agency notification. The agency will provide a manufacturer 
one opportunity to submit a revised credit allocation plan before it 
initiates civil penalty proceedings.
    (7) For purposes of this regulation, NHTSA will treat the use of 
future credits for compliance, as through a credit allocation plan, as 
a deferral of civil penalties for non-compliance with an applicable 
fuel consumption standard.
    (8) If NHTSA receives and approves a manufacturer's credit 
allocation plan to earn future credits within the following three model 
years in order to comply with regulatory obligations, NHTSA will defer 
levying civil penalties for non-compliance until the date(s) when the 
manufacturer's approved plan indicates that credits will be earned or 
acquired to achieve compliance, and upon receiving confirmed 
CO2 emissions and fuel consumption data from EPA. If the 
manufacturer fails to acquire or earn sufficient credits by the plan 
dates, NHTSA will initiate civil penalty proceedings.
    (9) In the event that NHTSA fails to receive or is unable to 
approve a plan for a non-compliant manufacturer due to insufficiency or 
untimeliness,

[[Page 43632]]

NHTSA may initiate civil penalty proceedings.
    (10) In the event that a manufacturer fails to report accurate fuel 
consumption data for vehicles or engines covered under this rule, 
noncompliance will be assumed until corrected by submission of the 
required data, and NHTSA may initiate civil penalty proceedings.
    (b) Civil penalties. (1) Generally. NHTSA may assess a civil 
penalty for any violation of this part under 49 U.S.C. 32902(k). This 
section states the procedures for assessing civil penalties for 
violations of Sec.  535.5. The provisions of 5 U.S.C. 554, 556, and 557 
do not apply to any proceedings conducted pursuant to this section.
    (2) Initial determination of noncompliance. An action for civil 
penalties is commenced by the execution of a Notice of Violation. A 
determination by NHTSA's Office of Enforcement of noncompliance with 
applicable fuel consumption standards utilizing the certified and 
reported CO2 emissions and fuel consumption data provided by 
the Environmental Protection Agency as described in this part, and 
after considering all the flexibilities available under Sec.  535.7, 
underlies a Notice of Violation. If NHTSA Enforcement determines that a 
manufacturer's averaging set of vehicles or engines fails to comply 
with the applicable fuel consumption standard(s) by generating a credit 
shortfall, the chassis, vehicle or engine manufacturer, as relevant, 
shall be subject to a civil penalty.
    (3) Numbers of violations and maximum civil penalties. Any 
violation shall constitute a separate violation with respect to each 
vehicle or engine within the applicable regulatory averaging set. The 
maximum civil penalty is not more than $37,500.00 per vehicle or 
engine. The maximum civil penalty under this section for a related 
series of violations shall be determined by multiplying $37,500.00 
times the vehicle or engine production volume for the model year in 
question within the regulatory averaging set. NHTSA may adjust this 
civil penalty amount to account for inflation.
    (4) Factors for determining penalty amount. In determining the 
amount of any civil penalty proposed to be assessed or assessed under 
this section, NHTSA shall take into account the gravity of the 
violation, the size of the violator's business, the violator's history 
of compliance with applicable fuel consumption standards, the actual 
fuel consumption performance related to the applicable standards, the 
estimated cost to comply with the regulation and applicable standards, 
the quantity of vehicles or engines not complying, and the effect of 
the penalty on the violator's ability to continue in business. The 
``estimated cost to comply with the regulation and applicable 
standards,'' will be used to ensure that penalties for non-compliance 
will not be less than the cost of compliance.
    (5) NHTSA enforcement report of determination of non-compliance. 
(i) If NHTSA Enforcement determines that a violation has occurred, 
NHTSA Enforcement may prepare a report and send the report to the NHTSA 
Chief Counsel.
    (ii) The NHTSA Chief Counsel will review the report prepared by 
NHTSA Enforcement to determine if there is sufficient information to 
establish a likely violation.
    (iii) If the Chief Counsel determines that a violation has likely 
occurred, the Chief Counsel may issue a Notice of Violation to the 
party.
    (iv) If the Chief Counsel issues a Notice of Violation, he or she 
will prepare a case file with recommended actions. A record of any 
prior violations by the same party shall be forwarded with the case 
file.
    (6) Notice of violation. (i) The Notice of Violation will contain 
the following information:
    (A) The name and address of the party;
    (B) The alleged violation(s) and the applicable fuel consumption 
standard(s) violated;
    (C) The amount of the proposed penalty and basis for that amount;
    (D) The place to which, and the manner in which, payment is to be 
made;
    (E) A statement that the party may decline the Notice of Violation 
and that if the Notice of Violation is declined within 30 days of the 
date shown on the Notice of Violation, the party has the right to a 
hearing, if requested within 30 days of the date shown on the Notice of 
Violation, prior to a final assessment of a penalty by a Hearing 
Officer; and
    (F) A statement that failure to either pay the proposed penalty or 
to decline the Notice of Violation and request a hearing within 30 days 
of the date shown on the Notice of Violation will result in a finding 
of violation by default and that NHTSA will proceed with the civil 
penalty in the amount proposed on the Notice of Violation without 
processing the violation under the hearing procedures set forth in this 
subpart.
    (ii) The Notice of Violation may be delivered to the party by:
    (A) Mailing to the party (certified mail is not required);
    (B) Use of an overnight or express courier service; or
    (C) Facsimile transmission or electronic mail (with or without 
attachments) to the party or an employee of the party.
    (iii) At any time after the Notice of Violation is issued, NHTSA 
and the party may agree to reach a compromise on the payment amount.
    (iv) Once a penalty amount is paid in full, a finding of ``resolved 
with payment'' will be entered into the case file.
    (v) If the party agrees to pay the proposed penalty, but has not 
made payment within 30 days of the date shown on the Notice of 
Violation, NHTSA will enter a finding of violation by default in the 
matter and NHTSA will proceed with the civil penalty in the amount 
proposed on the Notice of Violation without processing the violation 
under the hearing procedures set forth in this subpart.
    (vi) If within 30 days of the date shown on the Notice of Violation 
a party fails to pay the proposed penalty on the Notice of Violation, 
and fails to request a hearing, then NHTSA will enter a finding of 
violation by default in the case file, and will assess the civil 
penalty in the amount set forth on the Notice of Violation without 
processing the violation under the hearing procedures set forth in this 
subpart.
    (vii) NHTSA's order assessing the civil penalty following a party's 
default is a final agency action.
    (7) Hearing Officer. (i) If a party timely requests a hearing after 
receiving a Notice of Violation, a Hearing Officer shall hear the case.
    (ii) The Hearing Officer will be appointed by the NHTSA 
Administrator, and is solely responsible for the case referred to him 
or her. The Hearing Officer shall have no other responsibility, direct 
or supervisory, for the investigation of cases referred for the 
assessment of civil penalties. The Hearing Officer shall have no duties 
related to the light-duty fuel economy or medium- and heavy-duty fuel 
efficiency programs.
    (iii) The Hearing Officer decides each case on the basis of the 
information before him or her.
    (8) Initiation of action before the Hearing Officer. (i) After the 
Hearing Officer receives the case file from the Chief Counsel, the 
Hearing Officer notifies the party in writing of:
    (A) The date, time, and location of the hearing and whether the 
hearing will be conducted telephonically or at the DOT Headquarters 
building in Washington, DC;

[[Page 43633]]

    (B) The right to be represented at all stages of the proceeding by 
counsel as set forth in paragraph (b)(9) of this section;
    (C) The right to a free copy of all written evidence in the case 
file.
    (ii) On the request of a party, or at the Hearing Officer's 
direction, multiple proceedings may be consolidated if at any time it 
appears that such consolidation is necessary or desirable.
    (9) Counsel. A party has the right to be represented at all stages 
of the proceeding by counsel. A party electing to be represented by 
counsel must notify the Hearing Officer of this election in writing, 
after which point the Hearing Officer will direct all further 
communications to that counsel. A party represented by counsel bears 
all of its own attorneys' fees and costs.
    (10) Hearing location and costs. (i) Unless the party requests a 
hearing at which the party appears before the Hearing Officer in 
Washington, DC, the hearing may be held telephonically. In Washington, 
DC, the hearing is held at the headquarters of the U.S. Department of 
Transportation.
    (ii) The Hearing Officer may transfer a case to another Hearing 
Officer at a party's request or at the Hearing Officer's direction.
    (iii) A party is responsible for all fees and costs (including 
attorneys' fees and costs, and costs that may be associated with travel 
or accommodations) associated with attending a hearing.
    (11) Hearing procedures. (i) There is no right to discovery in any 
proceedings conducted pursuant to this subpart.
    (ii) The material in the case file pertinent to the issues to be 
determined by the Hearing Officer is presented by the Chief Counsel or 
his or her designee.
    (iii) The Chief Counsel may supplement the case file with 
information prior to the hearing. A copy of such information will be 
provided to the party no later than 3 business days before the hearing.
    (iv) At the close of the Chief Counsel's presentation of evidence, 
the party has the right to examine respond to and rebut material in the 
case file and other information presented by the Chief Counsel. In the 
case of witness testimony, both parties have the right of cross-
examination.
    (v) In receiving evidence, the Hearing Officer is not bound by 
strict rules of evidence. In evaluating the evidence presented, the 
Hearing Officer must give due consideration to the reliability and 
relevance of each item of evidence.
    (vi) At the close of the party's presentation of evidence, the 
Hearing Officer may allow the introduction of rebuttal evidence that 
may be presented by the Chief Counsel.
    (vii) The Hearing Officer may allow the party to respond to any 
rebuttal evidence submitted.
    (viii) After the evidence in the case has been presented, the Chief 
Counsel and the party may present arguments on the issues in the case. 
The party may also request an opportunity to submit a written statement 
for consideration by the Hearing Officer and for further review. If 
granted, the Hearing Officer shall allow a reasonable time for 
submission of the statement and shall specify the date by which it must 
be received. If the statement is not received within the time 
prescribed, or within the limits of any extension of time granted by 
the Hearing Officer, it need not be considered by the Hearing Officer.
    (ix) A verbatim transcript of the hearing will not normally be 
prepared. A party may, solely at its own expense, cause a verbatim 
transcript to be made. If a verbatim transcript is made, the party 
shall submit two copies to the Hearing Officer not later than 15 days 
after the hearing. The Hearing Officer shall include such transcript in 
the record.
    (12) Determination of violations and assessment of civil penalties. 
(i) Not later than 30 days following the close of the hearing, the 
Hearing Officer shall issue a written decision on the Notice of 
Violation, based on the hearing record. This may be extended by the 
Hearing officer if the submissions by the Chief Counsel or the party 
are voluminous. The decision shall address each alleged violation, and 
may do so collectively. For each alleged violation, the decision shall 
find a violation or no violation and provide a basis for the finding. 
The decision shall set forth the basis for the Hearing Officer's 
assessment of a civil penalty, or decision not to assess a civil 
penalty. In determining the amount of the civil penalty, the gravity of 
the violation, the size of the violator's business, the violator's 
history of compliance with applicable fuel consumption standards, the 
actual fuel consumption performance related to the applicable standard, 
the estimated cost to comply with the regulation and applicable 
standard, the quantity of vehicles or engines not complying, and the 
effect of the penalty on the violator's ability to continue in 
business. The assessment of a civil penalty by the Hearing Officer 
shall be set forth in an accompanying final order. The Hearing 
Officer's written final order is a final agency action.
    (ii) If the Hearing Officer assesses civil penalties in excess of 
$1,000,000, the Hearing Officer's decision shall contain a statement 
advising the party of the right to an administrative appeal to the 
Administrator within a specified period of time. The party is advised 
that failure to submit an appeal within the prescribed time will bar 
its consideration and that failure to appeal on the basis of a 
particular issue will constitute a waiver of that issue in its appeal 
before the Administrator.
    (iii) The filing of a timely and complete appeal to the 
Administrator of a Hearing Officer's order assessing a civil penalty 
shall suspend the operation of the Hearing Officer's penalty, which 
shall no longer be a final agency action.
    (iv) There shall be no administrative appeals of civil penalties 
assessed by a Hearing Officer of less than $1,000,000.
    (13) Appeals of civil penalties in excess of $1,000,000. (i) A 
party may appeal the Hearing Officer's order assessing civil penalties 
over $1,000,000 to the Administrator within 21 days of the date of the 
issuance of the Hearing Officer's order.
    (ii) The Administrator will review the decision of the Hearing 
Officer de novo, and may affirm the decision of the hearing officer and 
assess a civil penalty, or
    (iii) The Administrator may:
    (A) Modify a civil penalty;
    (B) Rescind the Notice of Violation; or
    (C) Remand the case back to the Hearing Officer for new or 
additional proceedings.
    (iv) In the absence of a remand, the decision of the Administrator 
in an appeal is a final agency action.
    (14) Collection of assessed or compromised civil penalties. (i) 
Payment of a civil penalty, whether assessed or compromised, shall be 
made by check, postal money order, or electronic transfer of funds, as 
provided in instructions by the agency. A payment of civil penalties 
shall not be considered a request for a hearing.
    (ii) The party must remit payment of any assessed civil penalty to 
NHTSA within 30 days after receipt of the Hearing Officer's order 
assessing civil penalties, or, in the case of an appeal to the 
Administrator, within 30 days after receipt of the Administrator's 
decision on the appeal.
    (iii) The party must remit payment of any compromised civil penalty 
to NHTSA on the date and under such terms and conditions as agreed to 
by the party and NHTSA. Failure to pay may result in NHTSA entering a 
finding of violation by default and assessing a civil penalty in the 
amount proposed in the Notice of Violation without processing

[[Page 43634]]

the violation under the hearing procedures set forth in this part.
    (c) Changes in corporate ownership and control. Manufacturers must 
inform NHTSA of corporate relationship changes to ensure that credit 
accounts are identified correctly and credits are assigned and 
allocated properly.
    (1) In general, if two manufacturers merge in any way, they must 
inform NHTSA how they plan to merge their credit accounts. NHTSA will 
subsequently assess corporate fuel consumption and compliance status of 
the merged fleet instead of the original separate fleets.
    (2) If a manufacturer divides or divests itself of a portion of its 
automobile manufacturing business, it must inform NHTSA how it plans to 
divide the manufacturer's credit holdings into two or more accounts. 
NHTSA will subsequently distribute holdings as directed by the 
manufacturer, subject to provision for reasonably anticipated 
compliance obligations.
    (3) If a manufacturer is a successor to another manufacturer's 
business, it must inform NHTSA how it plans to allocate credits and 
resolve liabilities per 49 CFR part 534.

[FR Doc. 2015-18073 Filed 7-22-15; 8:45 am]
BILLING CODE 1505-01-D



                                                                    Federal Register / Vol. 80, No. 141 / Thursday, July 23, 2015 / Rules and Regulations                                                              43631

                                               Dated: June 18, 2015.                                          PART 52—APPROVAL AND                                          Regulations, is amended by adding an
                                             H. Curtis Spalding,                                              PROMULGATION OF                                               entry in numerical order for Air
                                             Regional Administrator, EPA New England.                         IMPLEMENTATION PLANS                                          Pollution Control Regulation 44 to read
                                                                                                                                                                            as follows:
                                               Part 52 of chapter I, title 40 of the                          ■ 1. The authority citation for part 52
                                             Code of Federal Regulations is amended                           continues to read as follows:                                 § 52.2070    Identification of plan.
                                             as follows:                                                           Authority: 42 U.S.C. 7401 et seq.                        *       *    *       *    *
                                                                                                                                                                                (c) * * *
                                                                                                              Subpart OO—Rhode Island
                                                                                                              ■ 2. In § 52.2070, the table in paragraph
                                                                                                              (c), EPA-Approved Rhode Island

                                                                                                          EPA-APPROVED RHODE ISLAND REGULATIONS
                                                                                                                                                   State effective              EPA approval
                                                            State citation                                  Title/subject                                                                                   Explanations
                                                                                                                                                        date                       date


                                                      *                  *                                   *                  *                                      *                   *                       *
                                             Air Pollution Control Regulation                  Control of Volatile Organic Com-                          06/04/2009                       07/23/2015
                                               44.                                               pounds from Adhesives and                                                   [Insert Federal Register
                                                                                                 Sealants.                                                                                    citation]

                                                        *                              *                           *                          *                        *                     *                     *



                                             *      *         *       *       *                               The average set balance is based upon                         respective manufacturer’s credit account
                                             [FR Doc. 2015–17852 Filed 7–22–15; 8:45 am]                      the engines or vehicles performance                           accordingly by identifying which
                                             BILLING CODE 6560–50–P                                           above or below the applicable regulatory                      existing or traded credits are being used
                                                                                                              subcategory standards in each                                 to address the credit shortfall, or by
                                                                                                              respective averaging set and any credits                      identifying the manufacturer’s plan to
                                             DEPARTMENT OF TRANSPORTATION                                     that are traded into or out of an                             earn future credits for addressing the
                                                                                                              averaging set during the model year.                          respective credit shortfall. If a plan is
                                             National Highway Traffic Safety                                     (i) If the balance is positive, the                        rejected, NHTSA will notify the
                                             Administration                                                   manufacturer is designated as having a                        respective manufacturer and request a
                                                                                                              credit surplus.                                               revised plan. The manufacturer must
                                             49 CFR Part 535                                                     (ii) If the balance is negative, the                       submit a revised plan within 14 days of
                                                                                                              manufacturer is designated as having a                        receiving agency notification. The
                                             Medium- and Heavy-Duty Vehicle Fuel                              credit deficit.                                               agency will provide a manufacturer one
                                             Efficiency Program                                                  (4) NHTSA will provide written                             opportunity to submit a revised credit
                                                                                                              notification to the manufacturer that has                     allocation plan before it initiates civil
                                             CFR Correction                                                   a negative balance for any averaging set                      penalty proceedings.
                                                In Title 49 of the Code of Federal                            for each model year. The manufacturer                            (7) For purposes of this regulation,
                                             Regulations, Parts 400 to 571, revised as                        will be required to confirm the negative                      NHTSA will treat the use of future
                                             of October 1, 2014, on page 146, § 535.9                         balance and submit a plan indicating                          credits for compliance, as through a
                                             is reinstated to read as follows:                                how it will allocate existing credits or                      credit allocation plan, as a deferral of
                                                                                                              earn, and/or acquire by trade credits, or                     civil penalties for non-compliance with
                                             § 535.9    Enforcement approach.                                 else be liable for a civil penalty as                         an applicable fuel consumption
                                               (a) Compliance. (1) NHTSA will                                 determined in paragraph (b) of this                           standard.
                                             assess compliance with fuel                                      section. The manufacturer must submit                            (8) If NHTSA receives and approves a
                                             consumption standards each year, based                           a plan within 60 days of receiving                            manufacturer’s credit allocation plan to
                                             upon EPA final verified data submitted                           agency notification.                                          earn future credits within the following
                                             to NHTSA for its heavy-duty vehicle                                 (5) Credit shortfall within an                             three model years in order to comply
                                             fuel efficiency program established                              averaging set may be carried forward                          with regulatory obligations, NHTSA will
                                             pursuant to 49 U.S.C. 32902(k). NHTSA                            only three years, and if not offset by                        defer levying civil penalties for non-
                                             may conduct verification testing                                 earned or traded credits, the                                 compliance until the date(s) when the
                                             throughout a given model year in order                           manufacturer may be liable for a civil                        manufacturer’s approved plan indicates
                                             to validate data received from                                   penalty as described in paragraph (b) of                      that credits will be earned or acquired
                                             manufacturers and will discuss any                               this section.                                                 to achieve compliance, and upon
                                             potential issues with EPA and the                                   (6) Credit allocation plans received                       receiving confirmed CO2 emissions and
                                             manufacturer.                                                    from a manufacturer will be reviewed                          fuel consumption data from EPA. If the
                                               (2) Credit values in gallons are                               and approved by NHTSA. NHTSA will                             manufacturer fails to acquire or earn
                                             calculated based on the final CO2                                approve a credit allocation plan unless
rmajette on DSK7SPTVN1PROD with RULES




                                                                                                                                                                            sufficient credits by the plan dates,
                                             emissions and fuel consumption data                              it determines that the proposed credits                       NHTSA will initiate civil penalty
                                             submitted by manufacturers and                                   are unavailable or that it is unlikely that                   proceedings.
                                             verified/validated by EPA.                                       the plan will result in the manufacturer                        (9) In the event that NHTSA fails to
                                               (3) NHTSA will verify a                                        earning sufficient credits to offset the                      receive or is unable to approve a plan
                                             manufacturer’s credit balance in each                            subject credit shortfall. If a plan is                        for a non-compliant manufacturer due
                                             averaging set for each given model year.                         approved, NHTSA will revise the                               to insufficiency or untimeliness,


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                                             43632              Federal Register / Vol. 80, No. 141 / Thursday, July 23, 2015 / Rules and Regulations

                                             NHTSA may initiate civil penalty                         vehicles or engines not complying, and                   (B) Use of an overnight or express
                                             proceedings.                                             the effect of the penalty on the violator’s           courier service; or
                                                (10) In the event that a manufacturer                 ability to continue in business. The                     (C) Facsimile transmission or
                                             fails to report accurate fuel consumption                ‘‘estimated cost to comply with the                   electronic mail (with or without
                                             data for vehicles or engines covered                     regulation and applicable standards,’’                attachments) to the party or an
                                             under this rule, noncompliance will be                   will be used to ensure that penalties for             employee of the party.
                                             assumed until corrected by submission                    non-compliance will not be less than                     (iii) At any time after the Notice of
                                             of the required data, and NHTSA may                      the cost of compliance.                               Violation is issued, NHTSA and the
                                             initiate civil penalty proceedings.                         (5) NHTSA enforcement report of                    party may agree to reach a compromise
                                                (b) Civil penalties. (1) Generally.                   determination of non-compliance. (i) If               on the payment amount.
                                             NHTSA may assess a civil penalty for                     NHTSA Enforcement determines that a                      (iv) Once a penalty amount is paid in
                                             any violation of this part under 49                      violation has occurred, NHTSA                         full, a finding of ‘‘resolved with
                                             U.S.C. 32902(k). This section states the                 Enforcement may prepare a report and                  payment’’ will be entered into the case
                                             procedures for assessing civil penalties                 send the report to the NHTSA Chief                    file.
                                             for violations of § 535.5. The provisions                Counsel.                                                 (v) If the party agrees to pay the
                                             of 5 U.S.C. 554, 556, and 557 do not                        (ii) The NHTSA Chief Counsel will                  proposed penalty, but has not made
                                             apply to any proceedings conducted                       review the report prepared by NHTSA                   payment within 30 days of the date
                                             pursuant to this section.                                Enforcement to determine if there is                  shown on the Notice of Violation,
                                                (2) Initial determination of                          sufficient information to establish a                 NHTSA will enter a finding of violation
                                             noncompliance. An action for civil                       likely violation.                                     by default in the matter and NHTSA
                                             penalties is commenced by the
                                                                                                         (iii) If the Chief Counsel determines              will proceed with the civil penalty in
                                             execution of a Notice of Violation. A
                                                                                                      that a violation has likely occurred, the             the amount proposed on the Notice of
                                             determination by NHTSA’s Office of
                                                                                                      Chief Counsel may issue a Notice of                   Violation without processing the
                                             Enforcement of noncompliance with
                                                                                                      Violation to the party.                               violation under the hearing procedures
                                             applicable fuel consumption standards
                                                                                                         (iv) If the Chief Counsel issues a                 set forth in this subpart.
                                             utilizing the certified and reported CO2
                                                                                                      Notice of Violation, he or she will                      (vi) If within 30 days of the date
                                             emissions and fuel consumption data
                                             provided by the Environmental                            prepare a case file with recommended                  shown on the Notice of Violation a party
                                             Protection Agency as described in this                   actions. A record of any prior violations             fails to pay the proposed penalty on the
                                             part, and after considering all the                      by the same party shall be forwarded                  Notice of Violation, and fails to request
                                             flexibilities available under § 535.7,                   with the case file.                                   a hearing, then NHTSA will enter a
                                             underlies a Notice of Violation. If                         (6) Notice of violation. (i) The Notice            finding of violation by default in the
                                             NHTSA Enforcement determines that a                      of Violation will contain the following               case file, and will assess the civil
                                             manufacturer’s averaging set of vehicles                 information:                                          penalty in the amount set forth on the
                                             or engines fails to comply with the                         (A) The name and address of the                    Notice of Violation without processing
                                             applicable fuel consumption standard(s)                  party;                                                the violation under the hearing
                                             by generating a credit shortfall, the                       (B) The alleged violation(s) and the               procedures set forth in this subpart.
                                             chassis, vehicle or engine manufacturer,                 applicable fuel consumption standard(s)                  (vii) NHTSA’s order assessing the
                                             as relevant, shall be subject to a civil                 violated;                                             civil penalty following a party’s default
                                             penalty.                                                    (C) The amount of the proposed                     is a final agency action.
                                                (3) Numbers of violations and                         penalty and basis for that amount;                       (7) Hearing Officer. (i) If a party
                                             maximum civil penalties. Any violation                      (D) The place to which, and the                    timely requests a hearing after receiving
                                             shall constitute a separate violation with               manner in which, payment is to be                     a Notice of Violation, a Hearing Officer
                                             respect to each vehicle or engine within                 made;                                                 shall hear the case.
                                             the applicable regulatory averaging set.                    (E) A statement that the party may                    (ii) The Hearing Officer will be
                                             The maximum civil penalty is not more                    decline the Notice of Violation and that              appointed by the NHTSA
                                             than $37,500.00 per vehicle or engine.                   if the Notice of Violation is declined                Administrator, and is solely responsible
                                             The maximum civil penalty under this                     within 30 days of the date shown on the               for the case referred to him or her. The
                                             section for a related series of violations               Notice of Violation, the party has the                Hearing Officer shall have no other
                                             shall be determined by multiplying                       right to a hearing, if requested within 30            responsibility, direct or supervisory, for
                                             $37,500.00 times the vehicle or engine                   days of the date shown on the Notice of               the investigation of cases referred for the
                                             production volume for the model year                     Violation, prior to a final assessment of             assessment of civil penalties. The
                                             in question within the regulatory                        a penalty by a Hearing Officer; and                   Hearing Officer shall have no duties
                                             averaging set. NHTSA may adjust this                        (F) A statement that failure to either             related to the light-duty fuel economy or
                                             civil penalty amount to account for                      pay the proposed penalty or to decline                medium- and heavy-duty fuel efficiency
                                             inflation.                                               the Notice of Violation and request a                 programs.
                                                (4) Factors for determining penalty                   hearing within 30 days of the date                       (iii) The Hearing Officer decides each
                                             amount. In determining the amount of                     shown on the Notice of Violation will                 case on the basis of the information
                                             any civil penalty proposed to be                         result in a finding of violation by default           before him or her.
                                             assessed or assessed under this section,                 and that NHTSA will proceed with the                     (8) Initiation of action before the
                                             NHTSA shall take into account the                        civil penalty in the amount proposed on               Hearing Officer. (i) After the Hearing
                                             gravity of the violation, the size of the                the Notice of Violation without                       Officer receives the case file from the
                                             violator’s business, the violator’s history              processing the violation under the                    Chief Counsel, the Hearing Officer
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                                             of compliance with applicable fuel                       hearing procedures set forth in this                  notifies the party in writing of:
                                             consumption standards, the actual fuel                   subpart.                                                 (A) The date, time, and location of the
                                             consumption performance related to the                      (ii) The Notice of Violation may be                hearing and whether the hearing will be
                                             applicable standards, the estimated cost                 delivered to the party by:                            conducted telephonically or at the DOT
                                             to comply with the regulation and                           (A) Mailing to the party (certified mail           Headquarters building in Washington,
                                             applicable standards, the quantity of                    is not required);                                     DC;


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                                                                Federal Register / Vol. 80, No. 141 / Thursday, July 23, 2015 / Rules and Regulations                                         43633

                                                (B) The right to be represented at all                rebuttal evidence that may be presented               Hearing Officer’s decision shall contain
                                             stages of the proceeding by counsel as                   by the Chief Counsel.                                 a statement advising the party of the
                                             set forth in paragraph (b)(9) of this                       (vii) The Hearing Officer may allow                right to an administrative appeal to the
                                             section;                                                 the party to respond to any rebuttal                  Administrator within a specified period
                                                (C) The right to a free copy of all                   evidence submitted.                                   of time. The party is advised that failure
                                             written evidence in the case file.                          (viii) After the evidence in the case              to submit an appeal within the
                                                (ii) On the request of a party, or at the             has been presented, the Chief Counsel                 prescribed time will bar its
                                             Hearing Officer’s direction, multiple                    and the party may present arguments on                consideration and that failure to appeal
                                             proceedings may be consolidated if at                    the issues in the case. The party may                 on the basis of a particular issue will
                                             any time it appears that such                            also request an opportunity to submit a               constitute a waiver of that issue in its
                                             consolidation is necessary or desirable.                 written statement for consideration by                appeal before the Administrator.
                                                (9) Counsel. A party has the right to                 the Hearing Officer and for further                      (iii) The filing of a timely and
                                             be represented at all stages of the                      review. If granted, the Hearing Officer               complete appeal to the Administrator of
                                             proceeding by counsel. A party electing                  shall allow a reasonable time for                     a Hearing Officer’s order assessing a
                                             to be represented by counsel must notify                 submission of the statement and shall                 civil penalty shall suspend the
                                             the Hearing Officer of this election in                  specify the date by which it must be                  operation of the Hearing Officer’s
                                             writing, after which point the Hearing                   received. If the statement is not received            penalty, which shall no longer be a final
                                             Officer will direct all further                          within the time prescribed, or within                 agency action.
                                             communications to that counsel. A                        the limits of any extension of time                      (iv) There shall be no administrative
                                             party represented by counsel bears all of                granted by the Hearing Officer, it need               appeals of civil penalties assessed by a
                                             its own attorneys’ fees and costs.                       not be considered by the Hearing                      Hearing Officer of less than $1,000,000.
                                                (10) Hearing location and costs. (i)                  Officer.                                                 (13) Appeals of civil penalties in
                                                                                                         (ix) A verbatim transcript of the
                                             Unless the party requests a hearing at                                                                         excess of $1,000,000. (i) A party may
                                                                                                      hearing will not normally be prepared.
                                             which the party appears before the                                                                             appeal the Hearing Officer’s order
                                                                                                      A party may, solely at its own expense,
                                             Hearing Officer in Washington, DC, the                                                                         assessing civil penalties over $1,000,000
                                                                                                      cause a verbatim transcript to be made.
                                             hearing may be held telephonically. In                                                                         to the Administrator within 21 days of
                                                                                                      If a verbatim transcript is made, the
                                             Washington, DC, the hearing is held at                                                                         the date of the issuance of the Hearing
                                                                                                      party shall submit two copies to the
                                             the headquarters of the U.S. Department                                                                        Officer’s order.
                                                                                                      Hearing Officer not later than 15 days
                                             of Transportation.                                       after the hearing. The Hearing Officer                   (ii) The Administrator will review the
                                                (ii) The Hearing Officer may transfer                 shall include such transcript in the                  decision of the Hearing Officer de novo,
                                             a case to another Hearing Officer at a                   record.                                               and may affirm the decision of the
                                             party’s request or at the Hearing                           (12) Determination of violations and               hearing officer and assess a civil
                                             Officer’s direction.                                     assessment of civil penalties. (i) Not                penalty, or
                                                (iii) A party is responsible for all fees             later than 30 days following the close of                (iii) The Administrator may:
                                             and costs (including attorneys’ fees and                 the hearing, the Hearing Officer shall                   (A) Modify a civil penalty;
                                             costs, and costs that may be associated                  issue a written decision on the Notice of                (B) Rescind the Notice of Violation; or
                                             with travel or accommodations)                           Violation, based on the hearing record.                  (C) Remand the case back to the
                                             associated with attending a hearing.                     This may be extended by the Hearing                   Hearing Officer for new or additional
                                                (11) Hearing procedures. (i) There is                 officer if the submissions by the Chief               proceedings.
                                             no right to discovery in any proceedings                 Counsel or the party are voluminous.                     (iv) In the absence of a remand, the
                                             conducted pursuant to this subpart.                      The decision shall address each alleged               decision of the Administrator in an
                                                (ii) The material in the case file                    violation, and may do so collectively.                appeal is a final agency action.
                                             pertinent to the issues to be determined                 For each alleged violation, the decision                 (14) Collection of assessed or
                                             by the Hearing Officer is presented by                   shall find a violation or no violation and            compromised civil penalties. (i)
                                             the Chief Counsel or his or her designee.                provide a basis for the finding. The                  Payment of a civil penalty, whether
                                                (iii) The Chief Counsel may                           decision shall set forth the basis for the            assessed or compromised, shall be made
                                             supplement the case file with                            Hearing Officer’s assessment of a civil               by check, postal money order, or
                                             information prior to the hearing. A copy                 penalty, or decision not to assess a civil            electronic transfer of funds, as provided
                                             of such information will be provided to                  penalty. In determining the amount of                 in instructions by the agency. A
                                             the party no later than 3 business days                  the civil penalty, the gravity of the                 payment of civil penalties shall not be
                                             before the hearing.                                      violation, the size of the violator’s                 considered a request for a hearing.
                                                (iv) At the close of the Chief Counsel’s              business, the violator’s history of                      (ii) The party must remit payment of
                                             presentation of evidence, the party has                  compliance with applicable fuel                       any assessed civil penalty to NHTSA
                                             the right to examine respond to and                      consumption standards, the actual fuel                within 30 days after receipt of the
                                             rebut material in the case file and other                consumption performance related to the                Hearing Officer’s order assessing civil
                                             information presented by the Chief                       applicable standard, the estimated cost               penalties, or, in the case of an appeal to
                                             Counsel. In the case of witness                          to comply with the regulation and                     the Administrator, within 30 days after
                                             testimony, both parties have the right of                applicable standard, the quantity of                  receipt of the Administrator’s decision
                                             cross-examination.                                       vehicles or engines not complying, and                on the appeal.
                                                (v) In receiving evidence, the Hearing                the effect of the penalty on the violator’s              (iii) The party must remit payment of
                                             Officer is not bound by strict rules of                  ability to continue in business. The                  any compromised civil penalty to
                                             evidence. In evaluating the evidence                                                                           NHTSA on the date and under such
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                                                                                                      assessment of a civil penalty by the
                                             presented, the Hearing Officer must give                 Hearing Officer shall be set forth in an              terms and conditions as agreed to by the
                                             due consideration to the reliability and                 accompanying final order. The Hearing                 party and NHTSA. Failure to pay may
                                             relevance of each item of evidence.                      Officer’s written final order is a final              result in NHTSA entering a finding of
                                                (vi) At the close of the party’s                      agency action.                                        violation by default and assessing a civil
                                             presentation of evidence, the Hearing                       (ii) If the Hearing Officer assesses civil         penalty in the amount proposed in the
                                             Officer may allow the introduction of                    penalties in excess of $1,000,000, the                Notice of Violation without processing


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                                             43634              Federal Register / Vol. 80, No. 141 / Thursday, July 23, 2015 / Rules and Regulations

                                             the violation under the hearing                          Guam, or the Commonwealth of the                      the Department in which the United
                                             procedures set forth in this part.                       Northern Mariana Islands (CNMI). Once                 States Coast Guard is operating
                                               (c) Changes in corporate ownership                     the limit of 3,502 mt is reached in 2015,             (currently the Department of Homeland
                                             and control. Manufacturers must inform                   retaining, transshipping, or landing                  Security), to promulgate such
                                             NHTSA of corporate relationship                          bigeye tuna caught in the area of                     regulations as may be necessary to carry
                                             changes to ensure that credit accounts                   application of the Convention on the                  out the obligations of the United States
                                             are identified correctly and credits are                 Conservation and Management of                        under the Convention, including
                                             assigned and allocated properly.                         Highly Migratory Fish Stocks in the                   implementation of the decisions of the
                                               (1) In general, if two manufacturers                   Western and Central Pacific Ocean                     Commission. The WCPFC
                                             merge in any way, they must inform                       (Convention), which comprises the                     Implementation Act further provides
                                             NHTSA how they plan to merge their                       majority of the WCPO, will be                         that the Secretary of Commerce shall
                                             credit accounts. NHTSA will                              prohibited for the remainder of the                   ensure consistency, to the extent
                                             subsequently assess corporate fuel                       calendar year, with certain exceptions.               practicable, of fishery management
                                             consumption and compliance status of                     This action is necessary for the United               programs administered under the
                                             the merged fleet instead of the original                 States to satisfy its obligations under the           WCPFC Implementation Act and the
                                             separate fleets.                                         Convention, to which it is a Contracting              Magnuson-Stevens Fishery
                                               (2) If a manufacturer divides or                       Party.                                                Conservation and Management Act
                                             divests itself of a portion of its                       DATES: Effective on July 23, 2015.                    (MSA; 16 U.S.C. 1801 et seq.), as well
                                             automobile manufacturing business, it                    ADDRESSES: Copies of supporting                       as other specific laws (see 16 U.S.C.
                                             must inform NHTSA how it plans to                        documents prepared for this final rule,               6905(b)). The Secretary of Commerce
                                             divide the manufacturer’s credit                         including the regulatory impact review                has delegated the authority to
                                             holdings into two or more accounts.                      (RIR) and the Programmatic                            promulgate regulations under the
                                             NHTSA will subsequently distribute                       Environmental Assessment (PEA), are                   WCPFC Implementation Act to NMFS.
                                             holdings as directed by the                              available via the Federal e-Rulemaking                  A map showing the boundaries of the
                                             manufacturer, subject to provision for                   Portal, at www.regulations.gov (search                area of application of the Convention
                                             reasonably anticipated compliance                        for Docket ID NOAA–NMFS–2015–                         (Convention Area), which comprises the
                                             obligations.                                             0085. Those documents are also                        majority of the WCPO, can be found on
                                               (3) If a manufacturer is a successor to                available from NMFS at the following                  the WCPFC Web site at: www.wcpfc.int/
                                             another manufacturer’s business, it must                 address: Michael D. Tosatto, Regional                 doc/convention-area-map.
                                             inform NHTSA how it plans to allocate                    Administrator, NMFS, Pacific Islands                  WCPFC Decision on Tropical Tunas
                                             credits and resolve liabilities per 49 CFR               Regional Office (PIRO), 1845 Wasp
                                             part 534.                                                                                                         At its Eleventh Regular Session, in
                                                                                                      Blvd., Building 176, Honolulu, HI                     December 2014, the WCPFC adopted
                                             [FR Doc. 2015–18073 Filed 7–22–15; 8:45 am]              96818.                                                Conservation and Management Measure
                                             BILLING CODE 1505–01–D                                   FOR FURTHER INFORMATION CONTACT: Rini                 (CMM) 2014–01, ‘‘Conservation and
                                                                                                      Ghosh, NMFS PIRO, 808–725–5033.                       Management Measure for Bigeye,
                                                                                                      SUPPLEMENTARY INFORMATION:                            Yellowfin and Skipjack Tuna in the
                                             DEPARTMENT OF COMMERCE                                                                                         Western and Central Pacific Ocean.’’
                                                                                                      Background on the Convention                          CMM 2014–01 is the most recent in a
                                             National Oceanic and Atmospheric                           The Convention focuses on the                       series of CMMs for the management of
                                             Administration                                           conservation and management of highly                 tropical tuna stocks under the purview
                                                                                                      migratory species (HMS) and the                       of the Commission. It is a successor to
                                             50 CFR Part 300                                          management of fisheries for HMS. The                  CMM 2013–01, adopted in December
                                             [Docket No. 150619537–5615–01]                           objective of the Convention is to ensure,             2013. These and other CMMs are
                                                                                                      through effective management, the long-               available at: www.wcpfc.int/
                                             RIN 0648–BF19                                            term conservation and sustainable use                 conservation-and-management-
                                                                                                      of HMS in the WCPO. To accomplish                     measures.
                                             International Fisheries; Western and
                                                                                                      this objective, the Convention                           The stated general objective of CMM
                                             Central Pacific Fisheries for Highly
                                                                                                      established the Commission on the                     2014–01 and several of its predecessor
                                             Migratory Species; Bigeye Tuna Catch
                                                                                                      Conservation and Management of                        CMMs is to ensure that the stocks of
                                             Limits in Longline Fisheries for 2015
                                                                                                      Highly Migratory Fish Stocks in the                   bigeye tuna (Thunnus obesus),
                                             AGENCY:  National Marine Fisheries                       Western and Central Pacific Ocean                     yellowfin tuna (Thunnus albacares),
                                             Service (NMFS), National Oceanic and                     (Commission or WCPFC). The                            and skipjack tuna (Katsuwonus pelamis)
                                             Atmospheric Administration (NOAA),                       Commission includes Members,                          in the WCPO are, at a minimum,
                                             Commerce.                                                Cooperating Non-members, and                          maintained at levels capable of
                                             ACTION: Final rule.                                      Participating Territories (hereafter,                 producing their maximum sustainable
                                                                                                      collectively ‘‘members’’). The United                 yield as qualified by relevant
                                             SUMMARY:   NMFS issues regulations                       States is a Member. American Samoa,                   environmental and economic factors.
                                             under authority of the Western and                       Guam, and the CNMI are Participating                  The CMM includes specific objectives
                                             Central Pacific Fisheries Convention                     Territories.                                          for each of the three stocks: For each,
                                             Implementation Act (WCPFC                                  As a Contracting Party to the                       the fishing mortality rate is to be
                                             Implementation Act) to establish a catch                 Convention and a Member of the                        reduced to or maintained at levels no
                                             limit of 3,502 metric tons (mt) of bigeye                Commission, the United States is
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                                                                                                                                                            greater than the fishing mortality rate
                                             tuna (Thunnus obesus) for vessels in the                 obligated to implement the decisions of               associated with maximum sustainable
                                             U.S. pelagic longline fisheries operating                the Commission. The WCPFC                             yield.
                                             in the western and central Pacific Ocean                 Implementation Act (16 U.S.C. 6901 et                    CMM 2014–01 went into effect
                                             (WCPO) for calendar year 2015. The                       seq.) authorizes the Secretary of                     February 3, 2015, and is generally
                                             limit does not apply to vessels in the                   Commerce, in consultation with the                    applicable for the 2015–2017 period.
                                             longline fisheries of American Samoa,                    Secretary of State and the Secretary of               The CMM includes provisions for purse


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Document Created: 2015-12-15 12:53:10
Document Modified: 2015-12-15 12:53:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
FR Citation80 FR 43631 

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